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tv   Squawk on the Street  CNBC  February 19, 2010 9:00am-11:00am EST

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we start with mary thompson. >> initial reaction, expected to be a prime. a surprise move actually late yesterday to increase the discount rate by a quarter of a percent. the discount rate, the rate it charges banks for emergency loans. now, the futures as erin points out remain close behind. they're under pressure. the cpi report which is better than expected had little impact on futures. the focus will be at least initially the reaction to the discount move. if you take a look at what happened overseas, we saw a decline in the asian market of about 2% and the european markets with actually mixed. although france remains under pressure. the feds saying the discount rate hike is not a signal of the change in monetary policy. so let's look where we're seeing the impact right now. the dollar moves to a seven-month high. this is putting a pressure on commodities as well as commodity stocks. they are under pressure.
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that's where we're expecting to see the most impact. now, let's get a look at tech. the dell numbers came out. for more on that we go to bertha coombs. >> thank you very much. its revenues were stronger be u really what has disappointed the street was the fact it sacrificed margins for dwroukt. taking down its estimates saying they don't think that's necessarily the best strategy when it comes to valuation. stock is off by about 5% and it's having an influence on the rest. intel is down half a percent. microsoft off half a percent as well. we've got good news out of intu it. people are filing their tax rushes a lot earlier because they want that cap. they're raising its outlook and this morning it's up 8.7%. first solar is falling. germany. they're very concerned about the market.
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this morning it earns a downgrade over equity. web md falls. it earn as downgrade follows its earnings. you know, bertha, gold prices got hit with a double whammy this week. last night the fed raised the discount rate. we saw gold prices drop below $1,100 last night. they have recovered some. we're still lower on the session by about 5 bucks or so. keep in mind, look at what has happened to oil prices. oil prices actually right now are profitable. news coming out of france. total has said it has stopped food processing where its strike has been going on. that has affected refined fuels.
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>> thank you very much, sharon. here's what i find fascinating. we all know that yesterday was a hot cpi. today we did not see that. yet interest rates are definitely not very changed, almost identical to where they were before the release of today's data. and the yield curve may not as historically deep as it was at its worst point before the discount surprise yesterday. it's still mighty close. all rates, whether you look at the boon or what's going on in the states are higher than they were last week. you have to pay close attention and stay focused where the liquidity matters and how the market's pricing market is. erin, back to you. >> thank you very much. rick santelli. financials, gold, oil, the dollar, all moving, and why? because of the fed's decision to increase the discount rate. it may be a technical move from the fed, but is it a positive
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sign the banks are stronger and therefore don't need such ridiculously low special borrowing rates. in washington, john is with us now. john, there's so many ways to look at it. but as we talk about it as the first shot heard round the world, it's obviously a sign they see strength in banks, right? >> it's a sign they see strengths in markets and that they don't have to come directly to the fed for loans. you know, think this message that has to be repeated over and over again is that this is not a signal that broader interest rate increases are coming. the fed was very clear about that in its statement. ben bernanke was very clear about that. we have to take them at their word. banks are still nursing a lot of wounds. >> they can say that all they want but the truth is rates are
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going to go up. for most americans that is the most important rate. >> well, so, they're not expecting a big increase in mortgage rates actually. when they stop buying mortgages in march. and to the extent that mortgage rates do go up, you know, think if anything it gives them less of an inclination to raise the fed fund rate further down the road. if you ask me, the odds of a feds fund rate increase later this year have actually gotten down in the last 24 hours and gone up because the number was soft. the soft cpi number means the dove have a strengther hand. they're saying we've got to keep rates low for a long time. the feds said this technical discount rate did not change the broader view of where the financial system and the economy are. >> can you explain why, then, they did this in an emergency
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way? they have this meeting where they make this decision. why suddenly come out in between meetings and do this. >> i think because they did -- you know, in that respect it might have backfired on them, but they didn't want this to be confused with monetary policy. they didn't want this to be confused with a broader increase. they said let's do it far away where people are, you know, looking for signals on the broader interest rate policy. so they said let's do it quietly. let's telecast it way ahead of time and, you know, try to make this a clear distinction between what we do. so, you know, it was -- it was minute meant to look like it wasn't an increase in the broader sense. >> thank you very much. jon hilsenrath. >> on the floor with peter
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captain costa, official cnbc market commentator, got his decoder ring out and secret code book. so, you've been cautious for quite some time. you've been very like i don't like the way things are unfolding, okay? >> yes. >> now, a couple of weeks ago, today in fact. we came all the way back and since then we're doing okay. >> yeah. >> are we oklahoma now? >> well, what i'm seeing and what we're going to see, the way i look at it is we're going to be in a very tight band, trading range. you can probably make money where the bottom is and picking spots on the bottom. but we're definitely going to be rolling off like 9800 to 10,400 on the dow. there's going to be the very narrow trading band, and to me that's boring. unless there's major news -- last night's news, as far as i'm
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concerned, although it was suspected, i thought this would have a major impact on the market. apparently it's not having as much of an impact as i thought. but a lot of guys down here were expecting this to happen within the next couple of weeks. >> but there are going to be -- i'm sorry. >> the other thing is i think the fed before the end of the summer is going to raise the discount rate. mine the prime is going to go up a little bit. so i think that might have a major impact on the market. >> yeah, okay. i don't understand that, to be honest with you. >> why they would do it or -- >> i mean i understand rising interest rates in general are bad for stocks. on the other hand, after what we've been through, i see interest rates are really a signal that the economy is recovering. >> yeah. >> and that's good news. >> yeah. but what i'm looking at and i'm afraid i'm right is the rising interest rate is because the government is going to be putting more money into the system to pay for all -- you know, we're talking about the
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government taking control of this economy and putting a lot more money into the system to raise interest rates. >> here's the part of the system i would like to see the government put money into? >> your wallet? >> thank you, peter costa. have a great weekend, peter. >> thank you. >> we've got the david faber report, the special friday edition. plus, here at home. this is a special week for haines. his spam has come up for three days. what is up with the food trade? we're going to talk about that in a little less than two hours. tiger woods is expected to make his announcement. in your book is tiger a buy or a sell? squawk on the street is where you should cast your vote.
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welcome back to "squawk on the street." i'm standing in front of the head quarters of nestle, which is the world's biggest food producer. they posted numbers that were clearly ahead of forecasts on all different levels here. we can see that this is also giving a nice boost to the shares. they're up almost 3%. let me point out some of the highlights of the numbers here. organic growth. this is the most closely watched figure at nestle.
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that came in at 4.1% in 2009. that was higher than expected. the company also reassured its investors by reiterating that its longer term of organic growth target was between 3% and 5%, 6% here. most of what was going into the numbers is on what nestle would be doing. that, of course, left nestl with a cash flow of 28 billion swiss francs here. they decided to return most of it or a large part to shareholders. they've raised their dividends by 14% that. was better than expected. and they also announced a sizeable share worth 10 billion swiss francs here. given that this is a food company and consumers are really at the heart of this, i wanted to know from him what his assessment was of the strength of the consumer.
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>> the consumer is acti acting/reacting differently in different parts of the world. tomorrow is going to be better than yesterday for these people, and it's good. and part of the market, you see a different attitude. >> reporter: that was paul, the ceo of nestle. with that we send it back over to david. >> thank you very much. interesting hearing about nestle. the outcome deal. still something that a lot of takeover stock investors and others are focused on. that's not what i'm here to talk about here this morning. on the dole front i want to start off by mentioning "the wall street journal" report that they talk to smith international. areas of overlap, by the way, there are some, and they say they would expect a second
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request. they look for a time frame for any deal in terms of close between six and seven months. that being said, we don't know terms whatsoever. of course, if i can find something out during the course of the show or the day, we'll let you know. smith shares up as yu see it right there. about $7.5 billion, $8.5 billion. again, we don't know the mix, cash and stock. last year it was 40%. stocks 60% cash. slumber shay says it has a decent amount of cash but the expectations are so far it would not be an all-cash deal. take a look at smith. we'll bring you more as we learn. talk about cash on balance, that's become a focus for investors after a very strong earning season. we have a lot of corporations, at least according to a number
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of brokerage firms that follow these things, what they call excess cash. the question is what are they going to do with the excess cash? are they going to sit on it because they're still concerned about the economy and the tone of the economy and where things are going or are they going to use it? are they going to use it to build plants or hire more people or for m & a? there's about $852 billion of excess cash. when you excess cash, which they probably should, you still end up with $428 billion. by the way, total cash is $3.2 trillion. that is well above the 60-year average that had cash at about 8% of assets. again, begging that larger question, what are the corporations ultimately going to do? the bullish scenario that you hear from some is that that cash is going to work its way back into the market.
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it's going to work its way back into the economy. and it's going to become a significant drive over growth to a certain extent for jobs and perhaps m & a, which i'm sure everyone has noticed has picked up as of late. don't expect a deluge, but we're seeing more in the way of deal-making. mark, let me send it back to you. >> thank you very much, dave haines. >> tyson, smithfield, sanderson, hormel. >> why are investors seeking out spam? >> i don't know. confidence in g.e.? that's what it looks like.
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it's friday. and lower, not a big deal. we get a little break on fair value. minus .65. we're 3 and change. on the s&ps here are the minis, trading very quietly, pointing to the modest open, make 20 points on the dow. remember the other morning? was it yesterday morning? maybe it wasn't just yesterday. the futures was lower but during the opening it went up. so sometimes you get pleasant surprises. >> you do. look at that. i bet we're going to have a 32-point gain today. i don't know why. i pulled it out of thin air. >> but you got it right one day, which is more than most people. >> i should retire. >> now tyson, hormel, sanderson farms, what's making shoppers stick to these comfort moves? heather jones at bb & t.
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we're glad to have you with us. we've been noticing this. picking out names that were at one-year highs. what's the reason for itsome. >> good morning. the shares have certainly been stroing here today, particularly tyson and sanderson farms. i would acontributribtribute it, tighter feed costs, tighter supply, as well as improved export demand for especially beef and pork. >> especially beef and pork. there's been lots of issues with chicken, with u.s. chicken, when it comes to both russia and to china. >> correct, correct. russia has a ban on u.s. chicken at this point due to our use of chlorine. we would expect that to be resolved relatively quickly given russia's inventories are very tight at this point and the u.s. is a low-cost producer, but that is creating an issue for export demand of poultry at this point. >> whatever happened to the big
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concern of the cost of feed as an outgrowth of the bio fuels trend? does that go away? it hasn't gone away. several are still very vocal. but the u.s. farmer has responded very well. yields have been very strong and acreage has gone up in corn. the usda issued a very bearish crop report back in january and sodium costs have been under pressure significantly since then. so i don't think it's -- that concern has gone away and ethanol demand continues to increase, but export demand is down, and the supply side for feed is very robust. >> and why do you single out tyson and sanderson as being preferable to others? >> specifically for tyson they've dn a nice job managing
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their spreads. on the chicken side, they have some company-specific profit improvement initiatives, but more generally for chicken, and this is why we like sanderson as well, the feed cost is bullish. if you look at the breeder flock, that points to very tight supply for the rest of the year. smithfield on the other hand h e have a whole grain on that stock, tabld supplies have gone down on hogs as well, but not to the extent that they have on the poultry sigh. we don't feel as confident on the supply side for hogs and we believe smithfield shares discount a large amount of what's likely to come in fiscal 2011. >> thank you very much. we appreciate you taking the time, heather. just to outmark here, yesterday he said he loved spam. he came out singing about spam, liked spamalot but has never
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actually imbibed spam. >> or ingested. no, i never had it. but i like the concept. oh, my gorchsh. spam with cheese? that might get me. it's wrapping in something. >> when i say imbibed, isn't it sort of a liquid gelatinous -- >> i don't know. i never have. >> there was one on a shelf at home for 20 years i saw.
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let's bring in todd. thank you for being with us. main story for you is the discount rate, is it inflation? is it something else? >> well, i don't think we should be surprised about the discount rate hike. it was listed last week. one bit of information is the timing of the rate hike which is after the stock market closed,
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during the late part of the derivatives trade. and they were able to handle a great deal of volume and customers were able to do their transactions and hedge. i think it's very important to say that despite the fact that the market wasn't necessarily at tightened market volume periods, customers were able to come out and do their transactions as they wanted, and i think that's very important. >> and do you feel right now -- i mean what do you play to close, todd? up or down? >> i think today the stock market after the initial knee-jerking lower, we were down. we recovered a handful at the opening bell. i think today if the u curve continues to remain steep we'll see the stocks go higher. >> all right. well thank you very much, todd. we appreciate it. mark standing up. i wonder if he's going to go with the 32.
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>> mark the wide receiver marcus colston doing the honors. ticker ceco, ceco. our market reporters are standing by. >> let's get to them. we're down, but only 15. i know we're not fully open yet. mary's first. >> in standing in front of the post for smith international, we want to tell you about this. the indication is for stock to open at 38.25. this under reports that schlumberger is going to buy it for $9 million. in the early going we are seeing weakness in stocks in large parts because of the fed's supply move to increase the discount rate. that's the rate that it charges banks for emergency loan s by a quarter of a percent. earlier we had positive news on inflation with the core cpi for the month of february actually declining but that has little impact on the futures market at
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least prior to the open. we'll see whether this plays into the trading as the day progresses in large part because the fed continues to say the discount rate hike was a technical move and was not a signal that there's going to be a change. what it did do is going to boost to the dollar which in turn is putting a pressure on commodities. we're watching that. we're also watching banks. morgan stanley out with the note. if they actually decline you might want to buy them because they believe this discount rate hike is a sign of confidence in the u.s. economy. as we said, we're watching bid because of theed by. that was 2 cents ahead of expectations. the nasdaq also slightly lower, off by about 7 points. for more on that, we go to bertha coombs. >> thank you. dell is the big reason why. its revenues yesterday were actually above what people were
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looking for. but the margins are a big concern. they slipped below 18%. they claim that they're going try to get back there during the fiscal year, but the street is unconvinced. dell is off 5.5%, and the dell university is also suffering as well. you have intel off nearly 1%. microsoft, half a percent and hewlett-packard putting in some of its gains. intuit is one of the few stocks in the green. int intu it says they're actually upping their guidants. apollo this morning is warning that bad dead levels, students unable to pay, it's taking down its estimates for the second quarter. and the solar stocks that morning are also looking lower as first solar offers a cautious outlook and the canadians.
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they're pulling a lung drug over clinical data issues. let's hecht to the nymex now with sharon now. >> we continue to see a lot of volatility in the oil markets. traders are watching what is happening with the strike in france, both in europe and in the u.s. markets. we're watching to see what is going to happen here with the prices. both are lower right now, but nymex crude continues to be low. prices up nearly 7% for the week despite the strength that we receive in the dollar. the weak inventory report that we got with the bearish build and crude inventories and gasoline supplies and weak fuel demand but we're really paying attention to the gasoline market. that has been supporting crude prices all week. this strike situation adds fuel to the fire. keep in mind that the union there is calling on other workers and other refineries to go on strike as well. exxon mobile might go on strike
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on monday. they're calling for them to put down their tools on monday. they're talking 9,000 barrels a dare have been taken off the market as refineries have been shut down due to the strike. it's a situation that will tighten products in the u.s. the gasoline supplies may be coming to the u.s. and we're looking for support here from the gasoline market influencing prices. rick santelli in chicago. >> thank you, sharon. just consider, the last trading day of '09, the dollar index was just a smidge below 78. right now it's a smidge over 81. let's call it a 4% increase. now, listen. 4% doesn't sound like a lot, but, remember, it's a very short period of time and it's a world reserve currency. these aren't supposed to be hugely volatile. they're not supposed to have huge moves, but it is a huge move and it was well in place long before anything occurred yesterday, and it continues enhanced by the token yesterday from the fed.
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as far as interest rates, hey, the difference between 10 and 2-year is roughly between historic levels. yesterday it was in the low 290s, but it's higher than it was last week and all interest rates are higher than they were last week. so that dynamic is firmly in place. erin, back to you. >> thank you very much. rick santelli. >> okay. here for the buzz beyond the big board. at the open hogan, art hogan, product director with jeffries, good morning, art. thanks for being with us. >> good morning, mark. thank you vfr much. >> where are we? it looks like the correction maybe ran its course, but we're still in the range. >> yeah, absolutely. step back and look at the run we've had from march 9th to the january peak. seven of them ran 5 to 7%. everyone's looking for that 10%, 15% pullback. fwhefr got that. there seems to be buyers at a
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level. you know, the ongoing concerns we have in the marketplace, clearly the same. china, probably numb beer one, the economy, the pace of the u.s. economy when we go from an economy being stimulated by the government and one that's sel self-sustained and what the taxes look like and what regulations are going to do the end of this year, first part of next year. >> what significance if any to the fed move last a night? >> i think it's well telegraphed where we're going to have a more normalized gap. that gap is usually about 100 basis points. that's usually what it was before the crisis starts. that got compressed because of liquidity needs. we're still at half the rate we would normally be at. 50 basis point. i think this is a very normal course of events. i don't think that changes at all. it probably doesn't get moved into the fourth quarter this year. so if the market is reacting to that, it's an overreaction. >> art, as an equity investor,
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do you think there is a time line as in you're saying now the discounted rate is moving toward normal but it would go up even further, right? they would have to do that and then this. if they do that you're looking well into next year or even further before the quote/unquote benchmark rate goes up or could they do things simultaneously? >> you've got to do it pretty correct. that's certainly probably happening as we speak and going to be an ongoing thing. again the rate gets lifted. then the fed funds rate probably gets lifted, probably something in that order. think the crescendo of that comes with the fed fund rate being lifted in the first move but not till if first quarter. the good news is it's not going to happen until -- >> i just -- you said fourth quart over this year for 50 to 75 fifth decrease in fed funds? >> yeah. exactly. think about where we're coming from.
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you know, that's not -- you're certainly not talking about something that's draconian. to your point i think it's next year's business that matches the economic growth. we're still going to be accommodating iechb into the next half of the year. >> what were you going to do investment wise? i guess would you make changes and if so what? >> you would continue to have sort of the dollar, you know, related trade and the commodities complex work for the last half of this year. but also think about the consolidation that's probably going to happen. a lot more of it's going to happen. we certainly see it happening on the energy side. being in line on technology. understand that there's a lot of cash in the balance sheets that's going to be put to work. we're seeing more consolidation than we thought we'd seen. >> art hogan, thank you. >> thank you. >> straight ahead, stocks on the move after the fed announcement including apollo group and first
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solar. >> plus, mark, why go big when you have the option to go even bigger as in mega. chief mega cap stock picks trading. we'll be back. ♪ well, look who's here. it's ellen. hey, mayor white. how you doing? great. come on in. would you like to see our new police department? yeah, all right. this way.
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street." we'll call it reaction friday as we wait for tiger woods. they love this rate hike and the inference that we have an improving economy, at least enough so for the fed to take action. at last check, 18 of 20 members pushing higher here today. names like continental airline, land star, the trucking company. the economy at least in the face of economic data may be isn't as
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bad as some had feared. the heavy mining stocks and some of the cyclicals are not yet. particularly some of the european stocks. were more pessimistic. you could see mattel is down about 60 cents. that's about a 2%. sake for rio tinto. they had a bit of a trade overseas, now, financials have been certainly on the watch in terms of their sensitivity to the discount window. charles schwab, the undiscount window off the sell list as well as all the discount brokers at goldman sachs this morning. it is up at just about 3%. and lastly utilities, dte, detroit ededison, they raise ito buy. they also say that in spite of oncoming fed tightening cycle and the rebuild of the dividend tax cut, they still like this
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defensive activity play. back to you. >> thanks very much, matt nesto. chick check on the markets. the dow, no big deal. down 15. you know, what the hay. the nasdaq, another no big whoop. and the s&p. i mean we're not doing anything here, which is better than going down big time. and the futures indicated we might have a tougher time than we're having. david, hello. i always get to say mr. speeca. we begin with christian. christian, the market's been kind of stuck in the red zone for quite a while. is that bad or good? >> i think it's good for a buying opportunity but i think the general opportunity is going to be listless for quite some time.
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we have a sovereign debt crisis looming right behind us. the one good point has been the recent earning. that offers buying opportunities, but the market is not going to go strongly in any direction for a while. >> so you think in effect we're waiting here. >> i think we're waiting for a big -- you know, a big move. but i think we've had a good relief rally the last few trading days. generally i think we're trading sideways in the market for a while. >> all right. mr. speaker, what do you say? sideways for a while or it's all about stock picking or no? >> you're going to have a consolidation. we're encouraged by the fact that what's driven the market down recently has been what's going on overseas whether it's china tightening or debt problems in greece.
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fourth quarter revenues were up. we're still encouraged by that. >> you both agree on that. christian, here's my -- ooims. yeah, christian. you right good news, wage growth is nonexist ent. now, nobody can afford things. we need it for the self-fulfilling cycle. >> that's going to be a long wait. you know, the market direction is not going to be waiting for the consumer. i think the big indicatele to make it interesting is exports. the numbers up 39%. and industrial production. >> that's in california. long beach port? >> yes.
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that's a good place to be. >> i find it interesting -- and i'll start with david. neither one of you has mentioned the fed. >> yeah. >> hmm. >> what about the fed last night, david? i take it you don't think it's that big a deal. >> actually, mark, it's a step in the process of normalizing the still loufs the environmental, of reducing liquidity, which is exactly what we expect. the fed started things with term deposits and interest rates on bank deposits and bank reserves. we knew this was going to happen. what this is going to do is reduce liquidity, bring down investor risk appetite. >> i'm not quite saying so on that one. >> you're not. >> no. it's been well telegraphed. it's spiked up. the two-year note, you know, increased by about 6, 7 basis points. the equity market tends to get
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in late with this. the bond markets have been under pressure. >> we teased that we were going to talk about mega caps. that's you. you think they're cheap. give a couple of examples. >> a couple of examples, hewlett-packard, that would definitely be one. that's 65% overseas. there's a corporate refresh coming into the market. they're going to be putting a lot more money into their infrastructure. another good one we like is praxair, an industrial company. >> for the record, david spika likes industrials and techs because of the exposure. cap ex recovery. >> we've been following gold. we sure have. we had a 1,300 gold coin. worth mentioning is sill vefrmt silver today is higher.
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you can see it's up 4.4%. some of you have a vacation on the break. priceline is one of the most searched stocks on the come. we've got two top analysts to find out if it can pay for your next trip because you clicked. >> and right now your top dow movers are getting ready to display. big names. disney, pfizer, united tech, dupont, and mickey d's. we'll be right back. [ male announcer ] right now mrs. jones is freeing herself
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toyota's ceo akio toyoda will testify next wednesday for a congressional panel in washington. he promises to give a, quote, sincere explanation about the
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problems that led to the recall of millions of vehicles. chrysler has reached a deal in $20 million and saving, we're told, about 1,200 jobs in the process. fewer than ten americans are confident of their ability to invest in the stock market. but 60% still believe equities are important in a portfolio. priceline is one of the most searched stocks on it's seeing stock levels it hasn't seen in nearly a decade. nearly a decade ago there was a boon of everything when it came to tech. let's go inside the numbers because you clicked. good to have both of you with us. mark, priceline, i think it's
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funny when you think of a decade ago when we had the last big boon that turned into a bubble that turned into a bust, what do you think about priceline today? >> we continue to like that stock. you're right. this company has executed very well. they've rebuilt that business extremely well, and they even got a nice international presence. we like the asset interest here. >> what about you? >> the reason we like it as mark talked about it, more than 70% of the gross profit comes from the international market. wi think it will grow in new markets as well. >> i must say i'm a bit surprised of the company's success. i'm not questioning it. it surprises me because there's so much competition out there. with expead ya and hot something
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else. are they maintaining? gaining? what's going on with share? >> they're gaining market share in the international market if you look at it. if you look at some of the international -- first of all, the domestic market, they only had 9% market share. if you look at their growth trend. also in the international market they're gaining market shares from the offline market because the online mortgage is very low. >> mark, you have a very high opinion of their management team, right? >> i think it's one of the top three management teams in the internet space. i but them up there with and netflix. it's probably the biggest risk to the story. it's reflected in the valuation. look. this is a 30% to 40% earnings grower that trades at 20 times earnings. most others that you look at actually traded in a higher multiple. so the market is concerned about the competitor risk.
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>> all right. you also have a buy rating on expedia, but you prefer priceline. how do you draw that distinct? what persuades you? >> i think the edge here, the big eng here for priceline is that international segment that enron was talking about. they've got a have interesting play on the new market. it's called a goda. you don't see that when it was growing # 00% as well. ex expedia doesn't have that much exposeer. >> do they do international to international? if you start in the u.s. an go to beijing and then from there want to go to hong kong, a lot of sites don't do that functionali functionality. >> they have a site called and you can go to
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they opened up an office in south africa and work up software in south africa. >> i want to say this. i wanted to do the same route. >> we'll be right back. #
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welcome back to "squawk on the street." the mortgage bamlers association reporting the largest quarterly decline in 30-day delinquencies in the history of the survey. we're not out of the woods yet. take a look first at the total delinquents. 9.47% the number of loans in foreclosure nonseasonally adjusted was 4.58%. that was an increase. added up 15.02% of all u.s. loans are in trouble and that's a new record. where's the good news? in the bucket or how long the loans have been delinquent. the new 30-day dropped. fewer borrowers are now getting into trouble and that can be tied directly to fewer new jobless claims. the problem is the 90-day plus
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bucket is the largest it's ever been. it rose to 5.09% from quarter to quarter. banks holding borrowers in that 90 day bucket. president obama is about to announce in nevada a $1.5 billion program to help the worst hardest hit states where most are under water. thank you, diana. i'm setting with mary who's at the big board with us. the markets moved down, but not significantly so. >> it is a sign that the housing market remains the achilles' heel of the kmep. >> of everything. >> right. of everything. >> you're watching everything. >> the discount rate hike is really a focus for the markets tore, so what we've been watching are two areas specifically. the materials area, of course, because what we saw was a corresponding increase and the dollar moving. higher interest rates are
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dollar-friendly. and higher dollar, of course, not friendly for the commodity space. so what we receive is a weakness. even though we receive the gold tick up a bit and we're seeing increases. of course, the other group you watch are the big banks or the banking stock because the discount rate is the rate the bank charges for emergency loans. interesting to note that morgan stanley came out with note today in the wick of this saying, if you see this, buy them because they believe the increase in the discount rate is a positive sign. confidence in the fed that the market -- >> the bangs can get financing and handle it. >> exactly. it's a positive for them. so you wasn't to buy them on the dips today. >> interesting. there's a contrarian for you. thanks very much. now let's get to bertha at the nasdaq. i'm looking here. you're down. any reaction on the housing numbers or what else? >> not so much. we're a little bit better than we were coming into the housing
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number but just a tick or so. the real issue today is pretty much dell. we had great results from hp. dell's numbers were pretty good. it had much better revenue, close to around $14 billion. however, the problem is they sacrificed margins for those sales. they're back on the discount binge. a lot of analysts are concerned about that. so doll getting hit, seeing its estimates taking down. the deluge has spread over some of it. intel off nearly 1% as well. what's interesting is we did have some of the memory makers, some of them were starting to turn around. they're selling off again. some of the other areas lower today are the solar names. first solar gave a cautious outlook. canadian solar actually warned, so they're falling. retailers, though, erin, are popping up here. apparently disney is going to
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start selling goth, so that could be good for hot topic. >> let's talk about that and a more. for this, of course, we go to the expert, sharon epperson at the im mex. >> at least for the moment it seems like they're paying attention. we're seeing oil prices come off of it. but keep in mind the refinery strike i've been telling you about in france. we're seeing rbob a little bit higher here. we're looking at the process. we're talking about 9,000 barrels a day of capacity that could be impacted here and there is the possibility that this strike could extend to other refineries. exxon has two refineries in france. keep your eye on that, of
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course, over the weekend. meanwhile when you look at what's happened to the metals here, again, we're keeping a close eye on the dollar. we're looking at metal s sellin off. rick santelli, off to you in chicago. >> thank you, sharon. many are trying to figure out why was the timing of that normalization discount rate? and some believe that it's the fed responding to the market. let's face it. the market, whether it's the dynamic of a widening or steepening yield curve, which could be the market screaming to either remove some liquidity, worry about supply, or worry about inflation, that dynamic's in place. so many believe maybe the market's nudging a bit. if you believe that, you want to pay particularly close attention to how the market responded today. and virtually rates are higher. guess what? twos are up. twos and tens.
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the yield curve hovering around 290 is still hovering in record territory. the dollar is looking to have its best close since may of last year. erin, mark, back to you. >> thank you very much. rick santelli. on site at the tiger media event with new details. what? >> pretty big. sanders confirmed that elin will not at the statement. that was confirmed. i also spoke exclusively with the reuters reporters, one o or two will be in the room. nobody knows who he is. he says he's been given zero guidance. he was told there would be 30 people in the room, a couple of still photographers and one camera. that's all he knows. tiger sponsors that stayed with him may be with him but players
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still do not want to be really close to this story. again, elin, as reporting by kerry sanders of nbc news, will not be at this event. >> with regard to the media, brian. would you want to be in the room because if you can't ask questions, in effect, they're asking you to play the role of a potted plant. >> right. and the truth is i think a lot of old-school journalists would like to pull back and show the tiger woods side or pga side to do this. unless you get total solidarity it doesn't work. so we in the media have no juice. it's a manipulative situation. before he gets to the golf course he will take question. >> well the golf writers' association has boycotted the meeting. >> yes, they have. >> they're not going to be here. you can catch tiger's statement live -- that's right, right here
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on cnbc at 11:00 a.m. eastern. it's only going to take five minutes, right? no questions. a tightly scripted statement. a lot of potted plants in the room looking like people. small sign of improvement with foreclosures. they're reacting to the discount rate height. bob and cameron. cameron, aisle start with you. another housing plan? yeah. you know -- i'm here. yeah. i think there's 45 loans in the mba. you're seeing the other numb weres coming out on the weekly. the 30 and 60-day delinquency
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numbers are pretty stable but 90-day delinquency, we're still seeing as growing, so that's a concern. >> would you venture into whether this works or not, or would you prefer to avoid that? i mean, you know, there's a significant amount of debate whether this works. a lot of responsible people feel it actually postpones the ultimate reckoning which must come. >> yeah. concern over housing prices. you've got to step back and look at affordable which still at record highs. we're still very satisfied with that. the concern is that prices are not going to decline as much as rates are going to rise. so that's going to detract from the affordability equation for consumers in a period of recession. that's the concern we have moving forward. >> maybe this is simplistic, but if we're seeing it in 90 days but not in 30, wouldn't that matter? it would seem the worst is in the rear view mirror. >> it is. we're taking a one-month
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snapshot. i think we've got to see a couple months in there. i would think another thing that's not in there between the 30 and the 90 is we need to start peeling back and looking at these numbers a little differently. it's one thing to have the forecloses that's based on the financial foreclose. that's what worries the markets in a big way, whether it's unemployment or a life-changing event or you lose a spouse. my concern is so much of this is a strategic foreclose or strategic delinquency. that's a bigger problem. i mean if i'm a californian and bought a home at $250,000 that's worth $125 and my mortgage is $200,000, those people are walking away. >> maybe there's nothing pejorative to say about it, but one in five families owe more on their home than what it's worth. if we're not going to be out of this until it changes we're not going to be out. it's not going happen. >> housing prices have to
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recover so much. there's no motivation to take that into foreclosure. think of the bank. the housing market is so weak the banks don't want to take over the home, so we have to see some form of it. as you look at south florida, southern california, phoenix, and las vegas, even though they're a long way from coming back, in the last few months we receive price appreciation. >> do you think without improvement in the job sector we'll not get improvement in the house sector, is that right? >> it's fundamental. certainly below 9% is a barrier i'd like to see. a $200,000 loan at 5%. you're look at $1,070 a month. that's going to be a big exposer to consumers to keep affordable
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where it's at. i drove back to say it doesn't matter what hands with cpi. it's about what consumers earn in their paycheck every month. >> all right, gentlemen. thank you very much. >> before we go to break i want to say we have some alerts. greece's prime minister is speaking, pop andre yoo. we would hope he's right. are you going to bring up the retirement age again, mark? >> i'm biting my tongue. i think we've made that point, you know. they want to retire at the age of 61. >> well, it's going up to 63. but i'm just saying -- >> and they want the germans to wait for it. >> i get that. but we want the chinese to pay for not increasing ours. >> that's true. that's true. >> that's definitely a fallacy
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to say such behavior is reckless. >> how would you like to be a greek walking into the germans and say please pay my retirement at 61. >> the surprising results and a new report. and sleeper stocks that are alive and kicking. la-z-boy up 10%. seely and tempur-pedic also soaring. i by the way, i think the prime minister of greece went to amhurst. if he'd gun to williams, none of this would have happened. >> and the tiger woods watch. what do you think? if tier was a stock would you buy out of his mea culpa? you can see all of this in its
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glory. is where the street poll is. we have to break to check on the dollar.
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the street." i'm matt nesto.
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if you take a look at the sectors, utilities are the only gaming here tore. i'll give you more on that in a second. but discretionary stocks holding up well. you're seeing the retailers, department stores, electronics names actually leading this post rate defensive gainers. it's not gang market right now. still a defensive market. but jc penney, of course, out with the stronger than expected earnings. both ahead of expectations. it's one of the best top five performers in the s&p this morning. staples very strong. and best buy initiated a market performance. they think it is headed to 45 dollars a share. i mentioned utilities. 25 of 35 of the s&p utility index trading higher. detroit edison upgrading. pinnacle west, 2% higher. their full year forecast looks strong. but interestingly, ba reny
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associates points out six months after the rate hikes have soared, utilities have been the worst place to be, down 2.5% when the s&p on average has risen 3%. but today the uncertainty has the investors seeking something they can get their teeth around, erin, and that's got to be something conservative, at least at this moment. back to you. >> thank you. a new study outtoday has surprising results. i'm looking here at the results. joining us here first on cnbc, this has obviously made more complex by the fact that we're in this sort of exoh essential, what can history tell us about where the market can go? good morning, erin. that is a very good question. right now what the fed is
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basically saying is we're taking away the training wheels and you're back to pedaling on your own, which is something we were doing before. it's not an attempt to slow the economy but to get it back to where it was before. i want to release this study to say, look, as brook benton once sang, it's just a matter of time. >> you're basically saying after a rate hike in six months the market's usually up 2.6%. and this is studying it over a 50-year time frame. >> that's correct. so what i'm really trying to say is if people start to question should i be dumping all of my stocks now that the fed will be likely raising interest rates my answer is no, not at all. i think the returns will be more muted than they are traditionally during all cycles and certainly a lot less than
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when the feds are cutting rates. but the stocks that do the best tend to be a little surprising as well. >> sam, sam, sam, boy, are you dating yourself. brook beenton? come on. >> that was for your benefit, mark. >> that was a long time ago. unfortunately i remember it. your data says information technology is still the best? >> that is the case. but when you sort of peel away the leaves on the artichoke you find the heart of the matter being that technology has the lowest debt exposure, 18 versus 50 for the market versus 123 for utilities. so if investors are concerned about interest rate expenses plus you find that as companies realize economy might be slowing they want to improve their competitiveness by increasing their technology expenditures.
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>> you mentioned interest rates. you have to wait for it to happen and then see whether the market things it's good or bad because you can make an argument either way. >> that's right. >> rising rates are bad for stocks. on the other hand rising rates means the economy is improving, which is good for stock. >> are you done? >> he pushed you back down. >> yes, he did. >> you're bringing up good points, which is another reason why i say a history is a guide that's never gospel. you can never look to one thing that's going to be driving the market over the next six to 12 months. there are many, many factors that go into the mix and that's what makes a market. i would tend to say in general the market tends to slow when the rates raise. the market tends to favor tech over utilities. >> all right.
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samela, thank as lot. >> did you call him sammalot? >> no. i called him samela. >> people are disagreeing with my likeness to spam with gelatinous. >> tempur-pedic and seely, well, how about that? comfy stocks are going up. wall street's bullish on couch potatoes, we guess. >> he was so excited about that la-z-boy reference he decided to take a few weeks off and lay in his. sketcher, find out if it's a buy or sell. we'll be back.
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let's talk about where the market is heading. mark haines, i don't know why, has walked away briefly for the moment. lay z boy has gone up and tempur-ped
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tempur-pedic. the stocks have been fuller ones. ben sparrow and patty anderson. good to have both of you with us. as we try to get to the ways to trade. i don't know if you saw bob pisani earlier this week he could not contain himself with glee when he heard about the la-z-boy surge. would you get into names like that now after this run-off? >> not la-z-boy in particular. a lot of low quality stocks have done very well. lazy boil hasn't gotten a good balance sheet so it's gone up and up and up. these companies, the three that you mention have done a good job. they've come down along with sales. the thought is, jie, if revenues turn at all, these are lean, mean companies and the earnings will be like they were in 2007
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all over again. >> so you're talking about the mattress names, tempur-pedicing sealy, and select comfort. tempur-pedic, they're expensive. >> they're expensive, but they're not trading houses and the company has done a good job of bringing costs down. good ambulance sheet and people looked at it and said, jie, it's not like a tj maxx. off-price retailing very popular, but here the concept is the jocks got so cheap and it's a way of people upgrades lifestyle. >> you saw people, they could. buy a new home or go into a huge remodeling product but they do something to feel more comfortable. thinkings aren't fixed but the crisis mode is over, so is the trade over? >> i don't think the trade is over. if you think about it, the folks who were boyi ibuying the stuff
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now feeling less secure by they're feeling more secure than they were, say, a year ago. we're talking about boomers in the case of tempur-pedic who want a good night's sleep. they're willing to pay for that good night's sleep nchlt the case of la-z-boy, not only have they been cutting costs but they've been steelg shares from higher brands. if you look at others third quarter are getting decimated because people are trading down to la-z-boy. they do not want to be paying the prices they were paying before. >> so what is the -- what is your single best way to play the trend then? >> well, if i were to pick one i would pick tempur-pedic of the ones i mentioned. if i could go offbrand i would pick tj maxx.
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i want rock solid balance sheets. tempur-pedic has a good enough balance sheet that they manage their business very well. patty makes the point. the boomers can afford it because their stock portfolios are up a bit where a lot of people whose biggest asset might be their home. >> quickly, patty, you, if you had to pick just one? >> if i pick two, i'd pick la-z-boy. i know he disagrees with me. there's more to come there. >> if patty says, i'm buying it. >> i love it. the fault line over la-z-boy. thank you very much. is the fed a game-changer for investors? we have the trades you should be making over the weekend. hey, they changed interest rates. it matters. and the world will stop. volume on the new york stock exchange will drochl sponsors will be listening to tiger's every word in about po minutes'
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time. whether they want to or not, they probably will be. what's your bet on tiger, buy or sell at this time? where we would appreciate you cast your vote.
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welcome back to the headlines. a number of borrowers behind. the company has replaced the head of its debt management
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agency, and though the markets are mostly but modestly lower, 21 stocks in the s&p are at new one-year highs an on that list you'll find thomas engine, venn it is, and mattel. lit's take a look at the markets and their internals. everything's down. as you can see, less than a quarter -- well, actually nasdaq down a little bit more. but small declines. and the breadth is -- check it out, big board bread. not bad. 500 more down than up. nasdaq probably about the same. yeah, up 500 more down than up. >> some stocks on the move and there's only one person who knows how to move them back. hello, matt. >> hi, erin, nice to see you. i like your necktie. >> i'm trying a new look. >> everyone's telling me it's the place to be. if you get and look into some of
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the industry levels, the fact that dell is down by 7% is overshadowing some of the strength that we're seeing in some of these hardware companies we heard howard talking about company companies trying to improve by buying technology. xerox, very strong in an otherwise weak sector. june per up over 2% in a very strong check. keep an eye. as the history has showed us, it it is place to be in the long term. financials, they're on the cusp of turning positive. we're seeing a number of interesting sort of peripheral plays here. also investors are putting the -- the discount window had shrunk, shrunk, shrunk down prior to this discount rate. we're seeing names like charles schwab i mentioned earlier off the sell list. goldman sachs. state street is very strong here
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today. their third with a nice gain of its own. you have to take a look and sort through and don't get head faked by the sectors. back to you. >> thank you, matt nesto. coming up. your fed friday trade. >> in less than 30 minutes. >> until this. what do you want me to say, mark? everyone knows what i e-mail talking about. we'll be back.
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i'm looking around for someone and i didn't see him. anyway, the fed move making the
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friday trade bmore important thn ever? i don't know. maybe it's just hyperbole. shaughnessy. father of oh shauncy remote. >> you were looking for jim. that makes sense. do you have me ideas after the fed move? >> i think basically it's not a big deal. there's about $15 billion at the fed window and there's about a trillion dollar in the fed banking system. think what this shows us is the fed thinks the economy is strong enough for the move right now, and for the people who, you know, say this was some big surprise, i guess they missed watching you on cnbc last week when you reported that this is what ben bernanke would do. >> they said they were going to do this. so there you go again trying to see the glass as half full, huh? >> well, you know, in march of last year, as you know, when
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everyone was looking at not only a broken glass but said it would never be filled with water again, you know, we published a piece saying it was a generational buying opportunity. and we still find ourselves to be very bullish on the market over the longer term. i think that the various things are in place that are going to make equities the asset class of choice over the next three to five years. >> okay. what about the next two days? what should i do? >> two days. that's a long time for a trader like me on this one. but i agree. i think this move was great, i really do. p it's all going in a positive direction. unfortunately unemployment is still lingering, but we like it. >> this is friday, so you get a pick from each. pick. >> waterworks. they serve 32 states. they have 13 million customers.
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they've been often since like 1887. the still plus play, obama pulled $6 billion for water. these guys go in, they buy infrastructures and state south can't afford to buy them. they come in, raise the rates, great company. >> james, do you have a pick? >> yes. i have three. one is sketchers, skx, that is an apparel and shoemaker. they look very good. we like t.r.w. automotive group. same reasons. they're fitting into our small- to mid-cap portfolio. we did a study and found that in the second year of recovery, it starts to work very well. >> great. >> all right. thank you very much. general oh shaun ecy.
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>> mark, speaking of stocks, we've got surprising stocks hitting new marks, one trading at levels we've not seen in two decades. >> and we're talking tiger. before he talks at the top of the hour. his nike deal worth about $30 million a year. still intact. will he be wearing a swoosh? national car rental? that's my choice.
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because with national, i roll past the counter... and choose any car in the aisle. choosing your own car? now, that's a good call. go national. go like a pro. welcome back to "squawk on
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the street." everyone, coming up on the top of the hour, we'll have the tiger woods statement. that's sharp at 11:00 a.m. we're going to be on with instant analysis. we're going to talk whether he's won back america, won back his corporate sponsors and whether he's won back his wife. we'll continue to have continuing market reaction to the feds' really surprising move here. also the best way to invest as a result of the feds' action. and we'll have economist martin heldstein and vince ryanhert.
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we have a jam-packed show. today's milestone. wholesaler ww granger trading at levels not seen since 1987. they get the tools to the store. 20 other companies are hitting one year highs including southwest, big lots, home depot, con a gra and sara lee. >> helping boost sales and profits. on the other end of the spectrum, apollo group dropping down. the countdown to tiger. we haven't seen him in three months. millions of dollars. >> i have. i've seen pictures. >> sponsors will be listening.
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what should he say? should he say anything? and what will he say? >> tiger was a stock, would you buy or sell? right now. host: could switchino 15% or more on car insurance? host: does charlie daniels play a mean fiddle? ♪ fiddle music
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charlie:hat's how you do it son. vo: geico. 15 minutes could save you 15% or more on car insurance.
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hi. we're back. in about ten minutes tiger woods will be breaking his silence. he has put statements on his website, but he has not actually appeared in front of cameras or media since the november incident outside his home and that will happen today at 11:00. our all-star panel, anita dunn, former white house communications director, cnbc contributor. mike walker, senior editor of "golf magazine" and darren rovell is in vancouver and jane wells. >> is there anyone else we can get in here? >> jane wells out in vegas. >> i can pop up in those boxes. >> geez, i forgot who's here after all that.
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>> mike walker, i was quite impressed to read that the golf writers association is boycotting this thing. do you agree with that? >> well, i personally couldn't participate because i was not invited in the first place, but i think that it was a good statement by them. i feel that this is a non-news event as far as how it's going to be controlled and for them to say, you know, this is tiger making a statement and it's want really a news event and there's no reason for us to be there. i think it was a nice gesture on their part. >> it has to be viewed in the progression from the accounts that we get that this is the first step in the process, the rehab process, the process to get back on the golf course. there will be a point between now and the golf course where he will face questions. this is sort of the shallow end before he goes into the deep water. >> jane, what are the odds maifs makers trading? what are people trading on? >> in vegas, you cannot bet
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money only on sporting events to take place and sanctioned by a third party. you can't bet money in vegas on off-course things like this. there are odds and you get a lot online. the odds of britain are 8 to 1 that he'll announce a divorce. 100 to 1 that he'll announce his retirement and the over under on bo dog that he will how many times he'll say sorry is 5.5. >> 5.5. >> anita dunn, former white house communications director, would you have advised tiger to go through what he has gone through and handled it the way he's handled it for the last three months? >> well, mark, i'm not sure i would take that over under, i'm sorry, to be honest. here's the deal which is he needs to come out today and it needs to be an authentic statement to him whatever he says. the american people want to hear what he has to say and they'll make a decision.
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if he uses weasel words, if it he sounds like he's saying something written by a lawyer it's not going to work. if he wants to continue this process. this is something he probably should have done three months ago and he would have been able to control his narrative better. if he wants to gain control of the narrative he needs to be authentic today. >> let me ask you this. >> yes. >> why can't he say this is personal, it's really nobody's business. it didn't occur within the context of my golf career and therefore i'm not going to say anything about it. i'm just going to back and play golf, why can't he do that? >> he can do that. >> anita first. >> fine. >> i'm sorry. i didn't mean to interrupt anyone. >> sorry. sorry. sorry. >> he can do that, but his problem is that he actually positioned himself in the marketplace, certainly in the advertising world as more than just a golfer, that there was a brand name. >> that's right. >> so his brand has taken a hit here. i think the american people do feel at the end of day that this
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is between him, his wife, his children and his personal life, but to the extent that he advertised himself as something else, then it is something he needs to address. >> darren rovell, who is on team tiger? who made these decisions about what he's doing, when he's doing it, how he's handling it? >> well, it's mostly mark steinberg who is not only tiger's agent, erin, but also the head of img golf, the big agency. he also has glen greenspan on his team which was the former pr director at augusta national and augusta national plays the same card of not speaking out too much. so if you believe that glen greenspan's behind it, he's followed that kind of tact. i would predict, though that given everything so far, people are going to be overall disappointed at this statement, that tiger won't tell them enough. we'll have to see. now this is probably just one step in coming back, but i just have a feeling that people are already disappointed by what tiger has not told them and they're thinking that he's going
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to potentially give him -- give them a lot more. >> brian, what's it like there? how many cameras and stuff are there? >> oh, it's like tent city over there. not quite like michael jackson level hysteria, but it is definitely dozens of trucks and everyone swirling around and the favorite game being played in the parking lot in the hotel is who will be there? >> we have kerry sanders of nbc news that says elin won't be there. espn reporting is the mother will be there. some of the sponsors that stuck by him won't be there and players don't want to touch this right now and to darren's point, it's going to be, i find it difficult to look into a camera with no one asking you questions that you can play off emotionally to come off as emotional. >> the sincerity is it will be interesting to see how he emotes when he has nothing to reflect off of, but a camera. >> guys, guys, the real question is how much productivity -- >> go ahead, jane and then mike. >> how much productivity is about to be lost in corporate
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america and how much more will it be than the 2008 u.s. open playoff game on monday when tiger beat rocco? this is going to be -- everybody's anything to stop in the next three minutes. >> jane, people got their work done already so they can watch this. forget about productivity. they got their work done this morning and came in early. >> it's a friday, you know? >> go ahead, mike, you had a point? >> i just want to say that what people are looking for from tiger is a human moment. people don't want to have a congressional hearing where tiger has to answer a million questions about what happened, but they want a human moment where tiger relates to them and understands their curiosity is appropriate and he's a public figure and people will be curious about his life and if he accepts that and has that open moment that's the step he needs to take right now. >> there is a cynical side to it where people still think the golf is the goal here. that he needs to get through this process whether it's therapy or sex therapy to get on the golf course and everyone's
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pointing to the masters april 8th and he has to play once or twice before then and there are cynics even though there has to be emotion and apology that this is about getting back on the golf course. >> i would say it's more than just some cynics, unless you want to call me some cynic. clearly, this is about protecting his brand and getting back on the course. what else would it be about? >> his brand is more viable -- >> it's more than wanting to get back on the course, he's's great golfer. he should get back on the course and the question is how does he get back on the course in such a way that it makes him the most effective again. he can regain control of his narrative and right now his narrative will be golf because i'll just go do it. >> let me say this. it will be easier for tiger to say nothing than any other athlete because of the way journalists interact with golfers versus baseball players, football players and basketball players where they're meeting them in a loesching room after
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every game. tiger doesn't have to do that. he can protect himself a little bit more, and i know people say that's been his downfall here and even if he doesn't want to tell that much, he can actually get away with it more than if he was a football, basketball or baseball player. the interaction with the journalists. >> i don't think that's true anymore. >> mike walker -- >> hold it, folks. mike walker, i would like to get your thought on this, senior editor of "golf magazine." you've seen a lot. preface the question -- >> did tiger -- >> preface the question, the golf galleries have become rambunctious, and certain games attract more ram bufrpgs players, but i am anxious or curious to see whether he gets heckled on the course. is that a concern? >> i think on eye think there will be occasional heckle. you'll see the funny signs like you see at all these, vents and the golf fans and the respect of the game they won't heckle them, heckle tiger, but the kid gloves
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treatment from the media will be over. he will be asked these questions until he answers them and probably to the point where people will say hey, leave the guy alone, but the idea that he's tiger and he'll talk when he wants and if he doesn't want to talk, and i really think that's over. >> we are under a minute away. there's something to be said, mark. >> if i were tiger i would not want to play bet page any time true. that's a course on long island in new york, and i guarantee you there would be hecklers at bethpage. >> just because people want to hear what he has to say does not mean he has to take their questions or obligate it on a personal issue. >> he did set himself up as kind of a role model, and i get that. >> i get that. >> from my point of view he's also perfectly, don't say anything and just go back and play golf. it's fine with me, too. i'm not one of those people who cares that much. all right. we've got to go. we'll see you monday. erin's back on "street signs" at
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2:00. >> i'm brian shactman. welcome to "the call." we're awaiting tiger woods and his statement in ponte vedra. we have helicopters swirling overhead and we'll talk about what's going on here. it's a very controlled environment and just a handful of reporters and an entourage of 30 people will be in the room. i spoke with a reuters representative earlier and he was basically going to be whisked into the room and he gets to observe. there will be no questions. there will be a live feed coming out that we will all get to see and it's a dynamic where we're expected to hear an apology. the word is that it will not be some sort of statement about his next step in his golfing future, but a statement about the next step in his rehab future. there have been some news reports that he will go back into rehab early next week and that will address the timing issues that he's gotten so much criticism about, but people thinking that he needed to


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